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Authorisation Application Received From The Infant Nutrition Council
The Commerce Commission has received an application from the Infant Nutrition Council Limited (INC) seeking an authorisation for an arrangement allowing the INC to restrict its members from advertising and marketing formula products for infants aged up to 12 months old.
The Commission previously authorised these restrictions but this authorisation is due to expire on 8 November 2023.
The INC considers there has been no significant changes in the infant formula industry or in the actions of its Members and it is only seeking a new authorisation because of the expiry of the current authorisation.
The INC is a company representing the major manufacturers and marketers of infant formula and other early life nutrition products in Australia and New Zealand. The INC considers the restrictions requiring authorisation are important for New Zealand to meet its obligations under the World Health Organisation’s International Code of Marketing of Breast Milk Substitutes (WHO Code). In particular, the WHO Code aims to protect and promote breastfeeding, and to restrict the marketing of breast milk substitutes in ways that could undermine this aim.
A public version of the INC’s application for authorisation is available on the Commission’s case register. Public submissions on the application can be sent by email to registrar@comcom.govt.nz with the reference ‘Infant Nutrition Council’ in the subject line.
Background
The Commission may grant authorisation under section 58 of the Commerce Act 1986 (the Act) for agreements that may otherwise breach the Act if it is satisfied that the agreement will in all the circumstances result, or be likely to result, in such a benefit to the public that the conduct should be permitted.
The Commission’s Authorisation Guidelines explain when anti-competitive agreements that may lessen competition will be authorised under section 58 of the Act, and our process for determining such authorisation applications. A copy of the guidelines can be found on the Commission’s website.
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